Title
Emergency Loans for Laid-Off ECC-SSS Members
Law
Letter Of Implementation No. 150
Decision Date
May 1, 1984
Guidelines for emergency loans are provided to displaced workers in the Philippines, offering financial assistance to those who were laid-off after September 1, 1983, with repayment terms and release of funds dependent on the loan duration.

Covered members and qualifying timeline

  • ECC-SSS members who were laid-off on or after September 1, 1983 may be granted a three-month emergency loan, effective January 2, 1984.
  • A laid-off member must be able to submit proof of separation from employment.
  • The laid-off member must have been an employee with an aggregate service of one (1) year.
  • The Letter applies to ECC-SSS members laid off due to the present economic crisis, evidenced by an employer certification or other proof of termination or loss of employment.
  • ECC-SSS members separated from employment before September 1, 1983 are entitled only to a ONE (1) MONTH-salary loan under existing SSS policies.

Loan types, release structure, and conditions

  • A one-month emergency loan is granted under the eligibility framework for qualifying members.
  • A two (2)-month emergency loan and a three (3)-month emergency loan are granted under the same general eligibility framework.
  • Emergency loans are released in two (2) releases for a two-month loan.
  • Emergency loans are released in three (3) releases for a three-month loan.
  • The second and third releases require certification that the borrower is still separated from employment and not-employed.

Repayment schedule and interest terms

  • A one-month emergency loan must be repaid within ONE (1) YEAR.
  • A two (2) or three (3)-month emergency loan must be repaid in TWO (2) YEARS.
  • All loans granted under these implementing guidelines bear a simple interest rate of FIVE PERCENT (5%) a year.
  • Emergency loans are not deductible in advance.
  • No service fee is charged for a loan granted under these guidelines.
  • Any previous loan balance is not deducted from the new loan.

Borrower re-employment duties and notifications

  • If a previously laid-off member-borrower is re-employed under the same employer, the borrower must notify the SSS immediately.
  • If the separated member is re-employed under a different employer, the member must duly notify the SSS.

Where to apply and transitional entitlements

  • Applications for the three-month emergency loan are processed at the Main Office or at any regional, provincial, district offices of the SSS.
  • Members separated from employment before September 1, 1983 receive entitlement only to a ONE (1) MONTH-salary loan under existing SSS policies.

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